Lighting equipment manufacturer FW Thorpe has reported a small fall in profits despite a rise in sales.

The Redditch-based firm saw revenue for the year to June 30 increase by four per cent to £53.4 million, but pre-tax profits fell by two per cent, to £11.3 million.

Chairman Andrew Thorpe said that while public sector cuts made the market unclear, he was confident that there would be demand for refurbishments.

He said: “Our country has, no doubt, been “feather bedded” during recent financial crises by excessive government borrowing. The new Government is determined to reduce borrowing and we cannot predict the effect this will have on us as a lighting company. Fewer “Building Schools for the Future” projects will probably mean more refurbishments.

“We are also gaining strength in other areas of lighting where projects will continue, such as tunnel lighting, prison lighting etc and at the same time bringing on stream new innovative products in market areas where we have not recently been strong. Whatever the project, the keynote in our lighting solutions is one of lighting in the most energy efficient way and this alone should stand us in good stead.

“In recent years we have strived to be at the forefront of lighting application technology within our sector and with this aim we will continue.”

The company saw its operating cash flow rise by nine per cent, to £11.5 million, across the year.